Financial Milestone Birthdays

Age has its benefits, but cramming dozens of candles on a birthday cake isn’t one of them! You probably remember looking forward to your birthday when you were a kid. As we get older, birthdays don’t seem to hold the same charm. Still, some birthdays are more important than others— financially speaking. Here’s our list:

Day One. Newborns can be signed up for Social Security right out of the gate, so to speak.
Childhood. Just enjoy it, but when you turn 15, you can get a learner’s permit, and Mom and Dad’s insurance rates go through the roof. Parents, don’t just take this sitting down, unless you’re sitting down in front of your computer doing research. Always shop around for the best auto coverage.
Age 18, legally adult. You can register to vote, sign up to serve in the military, and make medical choices for yourself. If you’re a parent with one of these adult-but-not-really-grown-up individuals in your house, this would be a good time to sit down and talk about grown-up things like credit cards, insurance, and investing.
Age 19. Parents or guardians can no longer claim you as a dependent for tax purposes. College students can put this off until age 24. There’s one good reason for staying in school!
Age 21. If you’re self-employed at age 21, good for you! You can start investing in a SEP-IRA.
Age 24. The apron strings and purse strings get cut all at once when you turn 24, if you’ve been in college and filing as a dependent on your parents’ tax return. Prepare to file on your own when you turn 24, unless you’re already earning enough income to file separately.
Age 26. You can no longer be on your parents’ or guardians’ health insurance.

There’s a gap in the milestone birthdays here, to give you time to get your career and family underway, build for the future, and follow God’s leading into adulthood.

No matter what birthday you’ll celebrate this year, we hope you’ll make your relationship with God a priority. Psalm 71:18 says - “Even when I am old and gray, do not forsake me, my God, till I declare your power to the next generation, your mighty acts to all who are to come.” You can also listen to the related podcast on this topic.

Financial Milestone Birthdays

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